The Public Expenditure Minister says Government is aware “that there is a very heavy burden on low and middle income earners in our state.”

On Friday The Taoiseach announced that the top rate of tax - of 52 per cent - is to be reduced and the government says the reduction will begin in October.

Government says the reduction - aimed at low and middle income earners - will begin in October's Budget.

Minister Brendan Howlin says many people are carrying a heavy burden:

“There’s a recognition that there is a very heavy burden on low and middle income earners in our state. The transition to the higher rate of tax is at a very low base. So we’ll look at all that in the context of the budget but we have to balance expenditure matters with taxation matters, and that’s why we didn’t spell out in any great detail what the contents of the budget will be, because we need to have the full fiscal picture and we’ll have that towards the end of the year,” Minister Howlin said.

Reports today suggest Labour will push Fine Gael to raise the Universal Social Charge threshold, meaning less tax for thousands of workers.